Social Assistance in Malaysia: Who Benefits, and Who Misses Out

This paper presents an in-depth analysis of who benefits and who misses out on social assistance (SA) transfers in Malaysia. As the first in a two-part series on SA, the paper uses data from the Household Income Survey (HIS) of 2019 and 2022 to assess targeting outcomes and the adequacy of benefits received by those in need. In doing so, the paper profiles those who are excluded from such programs, despite being in need and eligible, and offers recommendations to improve the effectiveness of SA spending. A second paper in the series complements these findings with qualitative evidence on access and adequacy of SA transfers among residents of public housing (Program Perumahan Rakyat, PPR) in Kuala Lumpur. This paper is divided into four main sections. The first section provides an overview of the SA system in Malaysia. The second section introduces the main groups of SA programs. The third section assesses coverage, adequacy, and incidence of benefits of SA programs, before providing an in-depth analysis of targeting outcomes and discussing the targeting and design issues identified by this analysis. The fourth section presents policy recommendations for reform in the short, medium, and long term.